Which of the Following Statements Regarding Auditors Is False

question 23

Multiple Choice

Which of the following statements regarding auditors is false?

• A) The Sarbanes-Oxley Act called on the SEC to force companies to have audit committees that are dominated by outside directors and required that at least one outside director have a financial background.
• B) Whether information is material has been defined in the courts as referring to whether the information would have been a significant factor in an investor's decision about the value of the security.
• C) CEOs and CFOs must return bonuses or profits from the sale of stock or the exercise of options during any period covered by statements that are later restated.
• D) The law is especially strict with regard to takeover announcements, prohibiting any insider with nonpublic information about a pending or ongoing tender offer from trading on that information or revealing it to someone who is likely to trade on it.

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Definitions:

Lavender

A fragrant plant known for its calming and therapeutic properties, often used in aromatherapy and traditional medicine to reduce stress and anxiety.

Central Nervous System Depressants

Substances that slow down the activity of the central nervous system, often prescribed to treat anxiety, tension, and sleep disorders.

Kava

A plant native to the Pacific Islands that's used to produce a drink with sedative, anesthetic, and euphoriant properties, traditionally consumed for its relaxing effects.

Cirrhosis

A chronic liver disease marked by scarring of liver tissue which can lead to liver failure.